DeVry Earnings: Tops Profit Expectation

S&P 500 (NYSE:SPY) component DeVry Inc. (NYSE:DV) posted lower net income in the first quarter compared with a year-earlier period. Through its wholly-owned subsidiaries, DeVry owns and operates DeVry University, Chamberlain College of Nursing, U.S. Education, Ross University, Becker Professional Education, and Advanced Academics.

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DeVry Inc. Earnings Cheat Sheet

Results: Net income for DeVry Inc. fell to $32 million (49 cents per share) vs. $57.5 million (83 cents per share) a year earlier. This is a decline of 44.4% from the year-earlier quarter.

Revenue: Fell 7% to $482.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DeVry Inc. beat the mean analyst estimate of 31 cents per share. It fell short of the average revenue estimate of $529.5 million.

Quoting Management: “We are off to a good start in achieving our top two priorities of realigning our costs and regaining enrollment growth,” said Daniel Hamburger, DeVry’s president and chief executive officer. “We are now on track to deliver cost savings of $60 million for fiscal 2013, and Carrington’s new student enrollments exceeded our expectations. These efforts, combined with the results from DeVry Medical International, Chamberlain and Becker, demonstrate that we are making solid progress on our performance improvement plan.”

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 7.5% to $505.9 million in the fourth quarter of the last fiscal year. The figure fell 3.9% in the third quarter of the last fiscal year from the year earlier and dropped 5% in the second quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the fourth quarter of the last fiscal year with net income of 47 cents per share.

Net income has dropped 54.6% year-over-year on average across the last five quarters. Performance was hurt by a 90% decline in the second quarter of the last fiscal year from the year-earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is 50 cents per share, down from 57 cents ninety days ago. The average estimate for the fiscal year is $1.88 per share, down from $2.19 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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